on the crypto
International financial authorities and 20 of the world's largest economies are striving to establish official standards for the regulation and issuance of digital sovereign currencies.
International regulation expected by 2022
Group 20 (G20) - an organization made up of finance ministers and central bank governors representing the European Union and 19 countries on all continents - said on Tuesday in a report that it is working with the International Monetary Fund (IMF). ), the World Bank and the Bank for International Settlements (BIS) to formalize the use of Central Bank Digital Currency (CBDC) in banking systems.
According to the report, by the end of 2022, members of the G20, the IMF, the World Bank and the BIS will have completed the regulatory frameworks on stablecoins and the research and selection of projects, technologies and experiments for CBDCs.
The IMF and the World Bank will have the technical tools to facilitate CBDC transactions involving countries by the end of 2025, the report said. Countries "will examine the scope of new multilateral platforms, global stablecoin agreements and CBDCs to address the challenges that cross-border payments entail without compromising the minimum supervisory and regulatory standards to control risks to monetary and financial stability," he said. affirmed the G20 Financial Stability Board (FSB), an institution born after the financial crisis of 2008.
Multinational alliances
The G20 roadmap on stablecoins follows a joint report released by seven central banks last week through the BIS to outline a transnational front around nationalized digital currencies.
Last week's report, written by the US Federal Reserve, Bank of Canada, European Central Bank (ECB), Bank of England (BOE), Swiss National Bank, Sweden's Sveriges Riksbank and Bank of Japan (BOJ), outlines the requirements central banks would place on CBDCs in their respective countries.
In particular, CBDCs should connect to traditional financial technologies, settle high volumes of transactions instantly around the clock, be safe against cyberattacks, and comply with regulations and controls that apply to money already in circulation and that maintain bank power. central, the report states.
CBDCs could improve cross-border payments, counter Facebook's Libra-like private digital currencies (NASDAQ: FB), and transfer support fund payments to citizens during the coronavirus pandemic, the report said. Furthermore, CBDCs would not be anonymous and self-managed, the report said, diverging from the virtual currencies they would borrow from distributed ledger technology.
Experiments started
This month, the ECB and the BOJ said they were actively looking into the issuance of CBDC. An ECB report states that the decision to issue a digital euro would be announced next April.
BOJ officials said digital yen experiments began in the spring and required considerable effort to match China's digital yuan with the more complex CBDC still in testing.
